Which of the Following Accurately Represents a Fundamental Proposition Derived

question 1

Multiple Choice

Which of the following accurately represents a fundamental proposition derived from modern macroeconomic theory?

• A) Economies are generally stable over the long term with long-term growth driven by the sources of growth of potential GDP.
• B) Macroeconomic policy, in the short run, should be targeted at keeping inflation low and minimizing fluctuation in major macroeconomic variables.
• C) People form expectations about the future based on accurate processing of unbiased information gleaned from their personal and collective experiences.
• D) All of the above.
• E) None of the above.

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Definitions:

Primary Drives

Basic, innate urges that motivate behavior, such as hunger, thirst, or the drive for shelter, aimed at ensuring survival.

Sexual Desire

An individual's interest or craving for sexual activity and intimacy.

Thirst

The physical sensation driving the desire or need to drink fluids, typically triggered by hydration levels in the body.

Internal Locus of Control

The belief that one has control over their own life, as opposed to external forces having control.